Anomalies in the Value of Travel-Time Changes

By L. Hultkrantz, R. Mortazavi. Journal of Transport Economics and Policy, 2001

74 citations recorded by the source corpus.

Standard practice in econometric estimation of the value of travel-time changes divides travellers into market segments and assumes linear utility functions in each category. Here instead we derive a RUM-model from a second-order approximation to the utility function. The model is estimated by probit on data from a recent SP value-of-travel-time study. The influence of socio-economic variables, trip duration, and so on, on the value of travel-time changes is estimated and tested. Our conclusions differ in several ways from those of a previous study evaluating the same dataset with the conventional method. We find a considerably lower value of travel-time savings and signs of a cognitive threshold; respondents decline travel time savings smaller than 10-15 minutes irrespectively of the bid price. The non-linear approach also provides a convenient means for benefits transfer, that is, to calculate the mean value of time savings for a specific road project, depending on how it will be used, and by whom.

Subfields: Economics and Econometrics, Transportation

View Paper: https://www.semanticscholar.org/paper/39007c40a3f8b90fde3f2cfedee484b3cb6d396b

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Citations in the corpus

Investigating the distribution of the value of travel time savings (2006, result): “This is consistent with the finding of Hultkrantz & Mortazavi (2001), who discuss this effect as a result of a perceptual threshold, which may reflect either a real social cost or a decision rule employed in the course of completing a questionnaire.”